Correlation Between AptaBio Therapeutics and Samyoung M
Can any of the company-specific risk be diversified away by investing in both AptaBio Therapeutics and Samyoung M at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining AptaBio Therapeutics and Samyoung M into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AptaBio Therapeutics and Samyoung M Tek Co, you can compare the effects of market volatilities on AptaBio Therapeutics and Samyoung M and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in AptaBio Therapeutics with a short position of Samyoung M. Check out your portfolio center. Please also check ongoing floating volatility patterns of AptaBio Therapeutics and Samyoung M.
Diversification Opportunities for AptaBio Therapeutics and Samyoung M
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between AptaBio and Samyoung is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding AptaBio Therapeutics and Samyoung M Tek Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samyoung M Tek and AptaBio Therapeutics is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on AptaBio Therapeutics are associated (or correlated) with Samyoung M. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samyoung M Tek has no effect on the direction of AptaBio Therapeutics i.e., AptaBio Therapeutics and Samyoung M go up and down completely randomly.
Pair Corralation between AptaBio Therapeutics and Samyoung M
Assuming the 90 days trading horizon AptaBio Therapeutics is expected to under-perform the Samyoung M. In addition to that, AptaBio Therapeutics is 1.26 times more volatile than Samyoung M Tek Co. It trades about -0.27 of its total potential returns per unit of risk. Samyoung M Tek Co is currently generating about 0.28 per unit of volatility. If you would invest 398,000 in Samyoung M Tek Co on August 29, 2024 and sell it today you would earn a total of 61,000 from holding Samyoung M Tek Co or generate 15.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AptaBio Therapeutics vs. Samyoung M Tek Co
Performance |
| Timeline |
| AptaBio Therapeutics |
| Samyoung M Tek |
AptaBio Therapeutics and Samyoung M Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AptaBio Therapeutics and Samyoung M
The main advantage of trading using opposite AptaBio Therapeutics and Samyoung M positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AptaBio Therapeutics position performs unexpectedly, Samyoung M can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Samyoung M will offset losses from the drop in Samyoung M's long position.| AptaBio Therapeutics vs. ABL Bio | AptaBio Therapeutics vs. OliX PharmaceuticalsInc | AptaBio Therapeutics vs. Oscotec | AptaBio Therapeutics vs. Busan Industrial Co |
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Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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